Pricing and penalty/compensation strategies of a taxi-hailing platform

Smartphone-based taxi-hailing applications (apps) bring about significant changes to the taxi market in recent years. As platforms that connect customers and taxi drivers, taxi-hailing apps charge different rates for completed orders and penalize reservation-cancellation behaviors with different fines. In this paper, an equilibrium framework is proposed to depict the operations of a regulated taxi market on a general network with both street-hailing and e-hailing modes for taxi services, considering the reservation-cancellation behaviors of e-hailing customers. Based on the proposed equilibrium model, an optimal design problem of taxi-hailing platform’s pricing and penalty/compensation strategies is formulated and solved by the penalty successive linear programming algorithm. To demonstrate the practicability of the proposed solution algorithms and the optimal pricing and penalty/compensation schemes, large-scale numerical examples are presented based on a realistic taxi network of Beijing.

• Record URL:
  https://doi.org/10.1016/j.trc.2017.11.003
• Record URL:
  https://www.sciencedirect.com/science/article/pii/S0968090X17303091
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/0968090X
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • He, Fang
  • Wang, Xiaolei
  • Lin, Xi
  • Tang, Xindi
• Publication Date: 2018-1

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 263-279
• Serial:
  • Transportation Research Part C: Emerging Technologies
  • Volume: 86
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0968-090X
  • Serial URL: http://www.sciencedirect.com/science/journal/0968090X

Subject/Index Terms

• TRT Terms: Mobile applications; Motivation; Optimization; Pricing; Ridesharing; Smartphones; Taxicabs
• Uncontrolled Terms: Data platform
• Subject Areas: Data and Information Technology; Finance; Highways; Operations and Traffic Management; Public Transportation;

Filing Info

• Accession Number: 01661000
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 22 2018 9:20AM